Net profits of listed Dubai, Abu Dhabi firms jump 50% in Q2

Net profits of listed companies in Dubai and Abu Dhabi jumped respectively 49.6 per cent to $3.7 billion and 50 per cent to $7.2 billion year-on-year in the second quarter 2022 as oil earnings lifted quarterly profits of GCC-listed companies to a new record.

The region recorded broad-based quarter on quarter growth in profits across all sectors barring the financials and pharma sectors. The increase in profits of energy companies due to elevated oil prices around the $100 per barrel level accounted for the bulk of the absolute increase in profits in the region. “The region showed strong consumer and business sentiments during the quarter despite a slowdown at the global level mainly due to higher inflation and the efforts by central banks to tame rising prices,” Kamco Invest said.

Aggregate net profit for GCC-listed companies reached $77.3 billion during the quarter as compared to $65.7 billion during Q1-2022 resulting in a q-o-q growth of 17.6 per cent. The y-o-y growth was even stronger at 62.6 per cent when compared to Q2-2021 profits of $47.6 billion. Energy, banking and materials sectors were the top three in terms of absolute profit growth compared to the same quarter in 2021.

Quarterly net income for the GCC banking sector reached a new record high of $10.9 billion in Q2-2022. “The profit growth came mainly on the back of higher bank revenues further supported by a slight drop in provisions while cost-to-income ratio remained flat. Topline, on the other hand, reflected higher interest rates during the quarter with central banks across the GCC hiking rates following Fed rate hikes in the US,” Kamco report said.

issacjohn@khaleejtimes.com